The stock market might seem simple from outside, but only the traders know that the trading world is complicated. For example, most people from outside the trading world, do not know about the many different types of stock trading in India. If you are like them, then you have come to the right place. Here we will provide you with knowledge about investments in different types of stock markets. So you will be able to decide which one you want to step in. Let’s see the details.
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Fundamental Trading
You might have heard about the “buy and hold” strategy used for long stock term trading. Fundamentalists believe in that strategy and focus on company-specific events. They decide what all stocks should be bought and when to buy them so that they provide maximum profits. The determination of the stock prices is based on the industry, company, and economic statistics.
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Intraday Trading
Intraday trading is commonly known by the name “Day Trading.” Unlike fundamental trading, this one focuses on short-term or single-day trading methods. People who are active in different types of stock markets prefer intraday trading. It requires fast decision making and complete focus so that the trade can be closed before the stock market’s closing hours. Intraday traders also need to keep a keen eye on the markets as they have to look for profit-making opportunities throughout the day.
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Positional Trading
Positional trading methods lie somewhere between the fundamental and intraday trading. The holding period of stocks in this type of trading is stretched over months or years. Unlike other types of stock trading, positional traders focus on significant gains. They predict the large price movements so that they can make the most profit through them. Also, they do not need to keep a close eye on the everyday fluctuations of stocks, like the intraday traders.
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Swing Trading
Anyone who suggests any tips regarding the stock market for beginners, usually recommends them to step in Swing Trading. There is not much difference in day and swing trading. The only variation is for how long the stocks are held. To record more movements in stock prices, swing traders do not trade within one day. They hold the shares for a little longer so that better opportunities can be captured.
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Technical Trading
Out of all the types of stock trading in India, this is the only trading that focuses just on the technical market analysis. This analysis is used to predict the price variations in the various types of stock markets. Their work is based more on researching the stocks and gaining in-depth knowledge about them. They determine the stock prices through the view of the market.
Conclusion
Now that you know about five different types of stock trading in India, you can determine which one will suit you the best. Each one of these stock trading types requires different time and money investment. So it would be best if you looked through that as well. Further, you need to know about the various risks involved in stock trading. Once you get an overall view of the stock market wold, then you can decide and start trading in any of the trading types.
